Coal Stock in SCCL Stands at Only 2.651 Million Tonnes
Average Coal Stock between 2014 and 2024 Was 5 Million Tonnes
Lowest Coal Inventory in Recent Years
Site Visit Requirement to Ensure Work Understanding
Condition Introduced After Contractors Abandoned Works
ACB Inquiry into Medical Board Continues Based on Complaints from
Affected Persons and Management
One Person Already Arrested in the Medical Board Case
HYDERABAD, JUNE 06, 2026: For 137 years, the Singareni Collieries Company Limited (SCCL) has been serving the mining sector and has been supplying coal uninterruptedly to several southern states for decades. To ensure this, coal produced by SCCL is transported daily through rail and road networks. With 39 operating mines, continuous coal production and dispatch activities take place every day, making the maintenance of coal stocks a natural and essential part of mining operations.
Coal Stocks: Current Position
As of June 4 this year, SCCL had 2.651 million tonnes (26.51 lakh tonnes) of coal stock available at various mines and Coal Handling Plants (CHPs). This is the lowest stock level recorded in the last decade. Coal from these stocks is continuously dispatched to consumers through rail and road transport based on demand. Such stock maintenance is a normal operational practice followed by all coal-producing companies.
Average Coal Stocks in Previous Years
Coal stocks generally accumulate during the high-production period from November to May. These accumulated stocks are subsequently supplied to thermal power stations and other consumers during periods when production is affected by various factors. This practice has been followed for several years.
Coal stocks have been maintained in a similar manner since 2014. Records indicate that SCCL had:
- 7.0 million tonnes (70 lakh tonnes) of coal stock in 2015-16.
- 7.4 million tonnes (74 lakh tonnes) of coal stock in 2016-17.
From 2014 to 2024, the average coal stock maintained at mines and CHPs was around 5 million tonnes (50 lakh tonnes).
Coal Stocks Essential for Monsoon and Power Supply
Maintaining adequate coal stocks is particularly important during the monsoon season. Without sufficient stock, uninterrupted coal supply to thermal power stations may become difficult.
To ensure reliable power generation, SCCL maintains a minimum stock of around 3 million tonnes (30 lakh tonnes), equivalent to approximately 15 days of thermal power station requirements. This enables uninterrupted coal supplies during adverse weather conditions. Similar stock levels are maintained by coal companies across the country as a standard industry practice.
Why Was the Site Visit Certificate Introduced?
Overburden (OB) removal is critical for achieving SCCL’s coal production targets. Timely removal of overburden above coal seams is essential for accessing coal reserves and maintaining production schedules. These activities are generally carried out through contractors engaged via open tenders.
In many overburden removal tenders, contractors have participated without adequately assessing local geographical conditions, mining conditions, socio-political factors, infrastructure availability, and other site-specific challenges. Due to insufficient understanding of local conditions, some contractors either abandoned the work midway or executed it at a slow pace.
This has resulted in:
- Reduced operational efficiency.
- Loss of coal production for SCCL.
- Financial losses to contractors.
- Legal and contractual disputes.
In projects such as Srirampur OC-II and IK OC in Srirampur Area, inadequate assessment of site conditions led contractors to discontinue overburden removal works midway, adversely affecting SCCL’s planned production targets.
Objective of the Site Visit Certificate
The primary purpose of the Site Visit Certificate is to ensure that bidders fully understand:
- Site conditions.
- Safety requirements.
- Scope of work.
- Local operational challenges.
The objective is to ensure that contractors quote rates after thoroughly assessing all conditions and associated risks. The measure is not intended to restrict competition but to promote healthy competition and ensure efficient execution of works through proper planning and informed decision-making.
When Was It Introduced and What Has Been the Outcome?
The Site Visit Certificate requirement is not unique to SCCL. Similar provisions are already being implemented by several government and private organizations.
SCCL introduced the Site Visit Certificate requirement for overburden tenders in May 2025.
The practice is already followed by organizations such as:
- GMDC (Gujarat Mineral Development Corporation)
- GIPCL
- NMDC
- Several Solar Power Projects
- EPC Contracts
Within SCCL itself, Site Visit Certificates were made mandatory for Coal Handling Plant (CHP) projects in 2018, 2021, and 2023 based on recommendations from CMPDI, a subsidiary of Coal India Limited.
Since the introduction of the Site Visit Certificate requirement, awarded tenders have been progressing smoothly without major issues. Overburden removal activities under these contracts are being executed continuously and effectively. Similar practices in other organizations have also not attracted objections from contractors. SCCL is facilitating site visits for all contractors and issuing Site Visit Certificates to all contractors who have visited the sites.
ACB Inquiry into Previous Medical Boards
SCCL conducts Medical Board assessments for providing dependent and compassionate appointments. However, allegations emerged that large-scale irregularities were taking place in the process, with certain middlemen allegedly exploiting innocent workers and collecting substantial sums of money by promising jobs.
As part of efforts to cleanse and strengthen the system, SCCL management submitted a written complaint to the Anti-Corruption Bureau (ACB).
During the course of the ACB investigation:
- Two employees have already been arrested.
- Departmental action has also been initiated against them.
The ACB investigation into the matter is continuing. Simultaneously, SCCL’s Vigilance Department is conducting a departmental inquiry into the allegations and related irregularities.
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